3/18/2012 Mortgage Bankers Originations Historical and Forecast - - PDF document

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Contrary to Popular Belief

Victor L. Pickett Senior Vice President/Regional Manager

Loans are subject to credit approval.

Mortgage Bankers Originations Historical and Forecast ($billions)

Loans are subject to credit approval.

Quarterly Commercial Mortgage Commitments by Life Insurance Companies

Source: MBA

Loans are subject to credit approval.

Source: MBA

Quarterly Issuance

• f Commercial

Mortgage-Backed Securities (CMBS) and Commercial Real Estate Collateralized Debt Obligations (CDOs)

Loans are subject to credit approval.

Commercial/Multifamily Property Sales Volume

Loans are subject to credit approval.

“Financial Gaps-Relief for Storied Properties” Panel

$2.37 Trillion as of Third Quarter 2011

Source: Commercial Quarterly Data Book – 3rd Q 2011 Mortgage Bankers Association Commercial Banking 33.4% CMBS, CDO, and other ABS Issues 25.6% Agency and GSE Portfolios and MBS 14.2% Life Insurance Companies 13.1% Federal, State, and Local Governments 7.0% Finance Companies 2.4% Others 4.3%

MBA Total Debt Outstanding

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Loans are subject to credit approval.

Source: MBA

Commercial and Multifamily Mortgage Debt Outstanding

Loans are subject to credit approval.

UPB of Non-Bank Commercial/ Multifamily Mortgages, by Year of Maturity

Loans are subject to credit approval.

Year Total DSC < 1.0 DSC > 1.2 LTV > 100% LTV < 80% 2012 $71.8B 12% 75% 21.3% 71.2% 2013 40.6B 6.6 85 4.1 93.1 2014 46.8B 7.9 81 7.7 85.1 2015 89.9B 8.1 81 8.0 85.3 2016 120.5B 10.0 74.6 9.8 84.9 2017 139.1B 13.4 67 11.8 76.9 2018 16.4B 5.7 90 4.0 86.4 Source: TREPP

CMBS Maturities

Loans are subject to credit approval.

Interest Rates

Loans are subject to credit approval.

MBA Forecast vs. Actual 10-Yr Treasury Rates 2010

Source: MBA

Loans are subject to credit approval.

MBA Forecast vs. Actual 10-Yr Treasury Rates 2011

Source: MBA

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Loans are subject to credit approval.

Selected Interest Rates (percent)

Loans are subject to credit approval.

Belmont at Providence Virginia Beach, VA Multifamily Permanent Financing Insurance Company

Loans are subject to credit approval.

Stonebridge Apartments Norfolk, VA Multifamily Refinance Fannie Mae

Loans are subject to credit approval.

River House Apartments Norfolk, VA Multifamily New Permanent Financing HUD

Loans are subject to credit approval.

Maple Ridge Apartments Blacksburg, VA Multifamily Refinance CMBS

Loans are subject to credit approval.

Taylor Pointe Apartments Chesapeake, VA Multifamily Acquisition Financing Freddie Mac

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Loans are subject to credit approval.

Chesapeake Square Shoppes Chesapeake, VA Retail Acquisition Financing Insurance Company

Loans are subject to credit approval.

Food Lion Greenwood, SC Retail Acquisition Financing Insurance Company

Loans are subject to credit approval.

Battlefield Corporate Center Chesapeake, VA Office Acquisition Financing Insurance Company

Loans are subject to credit approval.

Towne Bank Center Newport News, VA Office Refinance Insurance Company

Loans are subject to credit approval.

ECPI Newport News, VA Office Refinance Insurance Company

Loans are subject to credit approval.

Jack Rabbit Virginia Beach, VA Self-Storage Refinance Insurance Company

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Loans are subject to credit approval.

AAAA Norfolk, VA Self-Storage Refinance Insurance Company

Loans are subject to credit approval.

25th Street Courtyard Marriott Virginia Beach, VA Limited Service Hotel Refinance CMBS

Loans are subject to credit approval.

Holiday Inn Express Virginia Beach, VA Limited Service Hotel Refinance Insurance Company